Healthtech Firm Indegene’s IPO Opens for Subscription Today

The price band of the issue has been fixed at INR 430-452. At the upper end, the company plans to raise INR 1,842 Cr through the issue.

The initial public offering (IPO) of Bengaluru-based healthtech firm Indegene opens for subscription today (May 6) and closes on May 8. The tentative date for the listing of shares of Indegene on the BSE and NSE is May 13.

Indegene is a digital-first, life sciences commercialization company. It provides research and commercialization services to biopharmaceutical and healthcare enterprises.

The IPO comprises fresh equity issues worth up to INR 750 Cr and an offer for sale (OFS) of up to 23,932,732 equity shares by existing shareholders and investors.

The price band of the issue has been fixed at INR 430-452. At the upper end, the company plans to raise INR 1,842 Cr through the issue.

Indegene intends to use the proceeds of the fresh issue to fund the repayment of debts of one of its material subsidiaries, ILSL Holdings, Inc.

Moreover, the fresh funds will also be utilized for funding the capital expenditure requirements of the company and one of its subsidiaries, Indegene, Inc., as well as to meet general corporate purposes.

Key Highlights

IPO Lot Size: The offer is divided as follows - 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.

Financials: As of December 2023, Indegene reported an operational revenue of INR 1,969 Cr and a post-tax profit of INR 241 Cr.

GMP: The current Grey Market Premium (GMP) of Indegene is INR 240.

Lead Managers: The issue is managed by Kotak Mahindra Capital, Citigroup Global Markets India, J P Morgan India, and Nomura Financial Advisory and Securities (India).

Share Allotment and Listing: The share allotment is expected to be finalized on May 13, and the estimated listing date is March 15.

Big Chunk Ahead of IPO

Ahead of the opening of the IPO, Indegene bagged INR 548.77 Cr from the anchor book.

According to the company, it allotted 1,21,41,102 equity shares to 36 anchor investors at the upper price band of INR 452 per equity share with a face value of 2 per share.

Out of the total allocation of 1.2 Cr equity shares to the anchor investors, 4.8 Lakh shares, or 39.58%, were allocated to 10 domestic mutual funds through a total of 18 schemes.

The list includes SBI Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund, Premji Invest, UTI Mutual Fund, Bandhan Mutual Fund, Invesco Mutual Fund, and others.

The anchor book attracted a diverse group of prominent investors.

These included Capital Group, a leading global investment management firm, Fidelity Investments, Loomis Sayles & Company, Jupiter Asset Management, Abu Dhabi Investment Authority, Custody Bank of Japan, WhiteOak Capital Management, and Copthall Mauritius Investment Limited.

Founded in 1998, by Rajesh Nair, Manish Gupta, Gaurav Kapoor, Dr Sanjay Parikh, and Anand Kiran, Indege is a global leader in the healthtech industry. The company specializes in pharmaceutical marketing, clinical trials, pharmacovigilance, medical and regulatory affairs, and health informatics.